Jump in recurring revenue cushions drop in property sales

LIKE other property groups here, Far East Organization (FEO) has seen its property sales in Singapore ease significantly in the past few years due to the property cooling measures.

The group's annual recurring revenue, however, has risen to S$772 million in 2015 - about 3.7 times the S$207 million in 2005.

This near quadrupling of recurring revenue has provided some cushion against the ups and downs of property cycles.

Recurring revenue includes rental income from the group's portfolio of leasing properties (comprising homes, office, retail and industrial space, and medical suites); revenue from serviced apartments and hotels; and takings from a string of food and beverage (F&B) outlets operated by the group. For example, FEO operates the Fat Cow, The Marmalade Pantry and Kinki restaurants. Under a…